Apple TV+, the streaming service launched by Apple in November 2019, is reportedly costing the company over $1 billion annually, despite investing more than $5 billion each year in original content. According to a recent report from The Information, Apple’s significant spending on high-quality productions has not yet translated into a strong market share or substantial profits.
The report states that Apple has poured more than $20 billion into original programming between 2019 and 2024, producing more than 80 movies and 120 original shows. High-budget series like Masters of the Air and Severance have helped Apple TV+ secure 72 Emmy nominations and nine Golden Globe nominations in the past year alone. However, despite the critical success, Apple TV+ has only attracted 45 million subscribers well behind streaming giants like Netflix (over 300 million subscribers) and Disney+ (nearly 125 million subscribers).
Apple TV+ charges $9.99 per month for an ad-free subscription, which is more affordable than competitors. Netflix’s lowest ad-free tier costs $17.99 per month, while Disney+ charges $15.99 per month for an ad-free plan. Apple also integrates Apple TV+ into other offerings, providing three free months of the service with Apple device purchases and including it in the $5.99 per month Apple Music Student Plan.
Despite the reported losses, Apple TV+ contributes to Apple’s Services division, which also includes Apple Music, Apple News+, Apple Fitness, Apple Arcade, Apple Books, and iCloud. The company’s latest earnings report showed that the Services division generated $26.3 billion in revenue for the quarter ending in January and $96 billion for the full year of 2024. Apple’s total revenue for the quarter was $124.3 billion.
CEO Tim Cook highlighted the streaming service’s impact during a January earnings call, stating that Apple TV+ has earned over 2,500 award nominations and 538 wins since its launch. Standout successes include Ted Lasso, which has won 11 Emmy Awards, and Coda, which became the first film from a streaming service to win an Oscar for Best Picture in 2022.